Yahoo! is currently in a precarious situation. Amid a declining position in the portal business and a handful of missed opportunities, the board fired CEO Carol Bartz. Then there were talks of acquisition, which were initially denied. But it seems co-founder Jerry Yang himself is telling Yahoo! staff around the world that an acquisition is very much possible.
In a leaked email memo to all of Yahoo’s 13,500 plus employees worldwide, co-founder, former CEO and current board member Jerry Yang explains that the company is working with its advisers Allen & Co in “fielding inquiries from multiple parties that have already expressed interest in a number of options.” While this might not unequivocally mean that Yahoo! is for sale, the tone of the memo — co-signed with fellow board members Roy Bostock and David Filo — is leaning toward that, and is serious in saying the company needs an overhaul.
This is in contrast to Yang’s earlier assurance that the company was not for sale.
What Yahoo! needs to do better – and we’ve talked about this – is accelerate innovation, reignite inspiration, and give our users what they want now – great content that is engaging and easy-to-use on any device and provides an experience in which they can participate and contribute.
However, Yang is not without praises for the company’s strengths, so far. Yahoo! still has a strong brand. They are the leader in display advertising. They have 680 million users worldwide. The brand is also host to nine #1 online properties in the U.S.
The memo does not share any specifics, although what is clear at this time is that the board is on the hunt for a new CEO. As for the possibility of acquisition, the corporate board is not in a hurry, the memo says, and “will take the time [they] need to select and structure the best approach for the company, its shareholders and employees.”
Yahoo! is indeed an internet company that has endured. But what will the next chapter be? Will an acquisition be the best solution to overhaul its business?
